By Toni Weeks
San Luis Obispo, Calif., March 11 – Cemex SAB de CV announced the exercise of $200 million of note purchase contracts underlying the contingent convertible units that it issued on Oct. 3.
As a result of the exercise, Cemex will issue $200 million principal amount of convertible subordinated notes due 2020 on March 13 to holders of the contingent convertible units in respect of which note purchase contracts have been exercised, in exchange for a cash payment of $200 million.
Interest on the new convertibles is equal to the five-year swap rate on March 11, or 1.77%, plus 195 basis points, subject to incremental adjustments if the share price is lower than $8.62.
The new notes are convertible into American Depositary Shares at an initial price equal to the greater of (i) $11.20, (ii) 130% of the five-day average volume-weighted average price of the ADSs beginning on March 18 and (iii) 110% of the closing price of the ADSs on March 13.
Proceeds of the new convertibles will be used in part for the payment at maturity of Cemex’s 4.875% convertible subordinated notes due 2015.
Cemex is a cement producer based in Monterrey, Mexico.
| Issuer: | Cemex SAB de CV
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| Issue: | Convertible subordinated notes
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| Amount: | $200 million
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| Maturity: | 2020
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| Coupon: | Five-year swap rate on March 11, or 1.77%, plus 195 basis points, subject to incremental adjustments if the share price is lower than $8.62; payable semiannually
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| Conversion price: | Greater of (i) $11.20, (ii) 130% of the five-day average volume-weighted average price of the ADSs beginning March 18 and (iii) 110% of closing price of the ADSs on March 13
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